Mullen Automotive announced on Thursday that it has filed a preliminary statement with the SEC to effect a new reverse stock split.
According to the filing, the ratio would range between 1-for-2 to 1-for-100.
However, shareholders would need to approve this proposal at the stockholder’s meeting on December 15, 2023.
“Mullen expects that the primary focus of the Board in determining whether or not to effectuate the Reverse Stock Split will be the ability to obtain and maintain a continued price of at least $1.00 per share of its common stock on The Nasdaq Capital Market without effecting the Reverse Stock Split.
The Reverse Stock Split will only be implemented if necessary to regain compliance with Nasdaq Listing Rule 5550(a)(2), which sets forth a minimum bid price of $1.00.
The Board will determine the final split ratio after stockholder approval and would retain the authority to abandon the Reverse Stock Split at any time or to delay or postpone it,” the press release said.
“Completion of the proposed Reverse Stock Split is subject to market and other customary conditions, including obtaining stockholder approval.
However, there are no assurances that the Reverse Stock Split will be completed, that it will result in an increased per share price or achieve its other intended effects.
The Board reserves the right to elect not to proceed with the Reverse Stock Split if it determines that implementing it is no longer in the best interests of the Company and its stockholders.”
Mullen’s CEO David Michery made no comment on the company’s new proposal to dilute shareholders.
Shares of the company are currently trading below $0.25.
MULN stock is down more than -53% in the past month and more than -99% in the past year-to-date.
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Recommended For You ✨
- The US Treasury Direct is Now Freezing Customer Accounts
- A Massive Bank Now Closes Several Branches in Florida
- California Now Has Massive Departures As Hundreds of Thousands Leave
- Chase Customers Now Unable to Access Money Through ATMs
- A US Bank is Now Denying Customers Access to Money
- A US Company Now Declares An Unexpected Bankruptcy